What is the EIP-3675 update?

What is the EIP-3675 update?

The EIP update known as 3675 is one of the most important upgrades in the history of Ethereum. This Ethereum Improvement Proposal (EIP) officially enabled the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). With this update, the old, energy-intensive consensus mechanism was replaced by a more sustainable and efficient alternative.

EIP-3675 formed the core of what is better known as “The Merge”, the moment when Ethereum fully transitioned from Proof-of-Work to Proof-of-Stake. This update had been planned for years and had major implications for the energy consumption of the Ethereum network, its security, and the future of the Ethereum network. In addition to EIP-3675, there have also been other well-known upgrades such as EIP-4844 and EIP-1599.

Key Takeaways

• EIP-3675 enabled the transition from Proof of Work to Proof of Stake, forming the technical core of The Merge.
• Proof of Work was fully removed, causing miners to disappear and validators to now secure the network by staking ETH.
• Ethereum’s energy consumption dropped by more than 99%, making the network significantly more sustainable and environmentally friendly.
• Security became economically stronger, as validators risk their staked ETH in cases of error or fraudulent behavior (slashing).
• EIP-3675 laid the foundation for future Ethereum upgrades, such as improved scalability and lower transaction costs.

What is an Ethereum Improvement Proposal (EIP)?

An Ethereum Improvement Proposal (EIP) is an official proposal to improve or modify Ethereum. Developers can propose protocol changes through an EIP, ranging from small optimizations to fundamental upgrades such as EIP-3675.

EIP-3675 was unique because it was not merely a technical improvement, but a fundamental change in how Ethereum reaches consensus. From that point onward, the entire network would operate differently, and miners would also have to transition to this consensus mechanism.

Ethereum before EIP-3675: Proof of Work

Before EIP-3675 was introduced, Ethereum operated using Proof of Work, the same mechanism used by Bitcoin. Miners solved complex mathematical puzzles to validate transactions and add new blocks to the blockchain.

Although Proof of Work is highly secure, it also has clear disadvantages:

• It consumes an extremely large amount of energy
• It requires expensive hardware (which is no longer affordable for most individuals)
• It is less scalable in the long term

These limitations had been a major topic of discussion within the Ethereum community for years. That is why the EIP-3675 proposal was introduced.

What exactly does EIP-3675 change?

EIP-3675 completely removes Proof of Work from the Ethereum protocol and makes Proof of Stake the only consensus method. Instead of miners, transactions are now validated by validators.

Validators stake their ETH as collateral. Based on this, they are given the opportunity to propose new blocks and confirm transactions. Those who behave correctly receive rewards, while those who attempt fraud can lose part of their stake. Validators therefore have a strong incentive to maintain high reliability and uptime. If they fail to do so, a portion of their Ethereum can be taken away (slashing).

In short:

• Miners disappear
• Validators take their place
• Energy-intensive calculations are no longer required

The role of The Merge

EIP-3675 was activated during The Merge, when the existing Ethereum mainnet was merged with the Beacon Chain (the Proof of Stake chain that has been running since 2020). From that moment on, every transaction on Ethereum has been validated via Proof-of-Stake.

It is important to note that The Merge had no impact on user accounts, smart contracts, or tokens. For users, Ethereum continued to function the same way, but under the hood, everything changed.

Why is EIP-3675 so important?

1. Drastic reduction in energy consumption

By transitioning to Proof of Stake, Ethereum’s energy consumption dropped by more than 99%. This made Ethereum significantly more environmentally friendly and reduced criticism of the ecological impact of blockchain technology.

2. Stronger economic security

In Proof of Stake, real capital is at risk. Validators risk their staked ETH if they act maliciously, making attacks on the network economically unattractive.

3. Foundation for future upgrades

EIP-3675 was not an endpoint, but a prerequisite for further scalability solutions such as sharding and other Ethereum upgrades. Without this transition, many future improvements would not have been possible.

What does EIP-3675 mean for ETH holders?

For regular ETH holders, there was little immediate change in how Ethereum was used. However, the update introduced new opportunities:

• ETH can be staked to earn rewards (often for free through brokers or exchanges such as Finst)
• The network became more energy-efficient and future-proof
• Ethereum gained a stronger economic model

In addition, the transition to Proof-of-Stake led to lower net issuance of ETH, which may influence the coin’s scarcity in the long term.

Is EIP-3675 the end of Ethereum updates?

No, definitely not. EIP-3675 was a milestone, but Ethereum continues to evolve. After The Merge, further upgrades followed and will continue to follow, focusing on scalability, lower transaction fees, and a better user experience. You can view EIP-3675 as the foundation on which the next generation of Ethereum is being built.

Final thoughts

The EIP-3675 update marks a historic moment for Ethereum. By permanently moving away from Proof of Work and transitioning to Proof of Stake, the network became more sustainable, more efficient, and better prepared for the future. This upgrade was technically complex, but essential to keep Ethereum scalable and relevant in the long term. For investors, developers, and users, EIP-3675 means one thing above all: Ethereum is ready for the next phase of growth and innovation.